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GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Ratos AB's Interest Coverage for the quarter that ended in Jun. 2026 was 8.89.
Ratos AB's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.34.
As of today, Ratos AB's Altman Z-Score is 1.41.
Ratos AB (OTCPK:RTOBF) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Ratos AB has the Financial Strength Rank of 5.
Ratos AB Financial Strength Related Terms
RTOBF vs PWR, FIX, EME: Financial Strength Comparison
For the Engineering & Construction subindustry, Ratos AB's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ratos AB Financial Strength vs Construction Industry
For the Construction industry and Industrials sector, Ratos AB's Financial Strength distribution charts can be found below:
* The bar in red indicates where Ratos AB's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Ratos AB has a Z-score of 1.41, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.41 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ratos AB (RTOBF) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Ratos AB and its competitors. This is near median its historical median of 5.00. Over the past decade, Ratos AB's Financial Strength has ranged from 2.00 to 6.00.
Is Ratos AB's Financial Strength too high?
Ratos AB's current Financial Strength of 5 is near median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 6.00. Overall, Ratos AB has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ratos AB's Financial Strength compare to PWR and FIX?
Ratos AB's Financial Strength of 5 can be compared against companies in the Construction industry. Historically, Ratos AB's own Financial Strength has ranged from 2.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Construction company?
A good Financial Strength depends on the Construction industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Ratos AB and its competitors. Ratos AB's current Financial Strength is 5, which is near median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ratos AB stock overvalued right now?
Based on GuruFocus' analysis, Ratos AB (RTOBF) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.59, compared to a current price of $3.42 — trading 32% above its estimated fair value. The current Financial Strength is 5, which is near median its 10-year median of 5.00. Ratos AB's overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Ratos AB (RTOBF), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ratos AB (RTOBF) Overvalued in 2026?
Based on GuruFocus' analysis, Ratos AB stock appears to be overvalued.
The current stock price of $3.42 is trading 32% above its estimated GF Value™ of $2.59.
GuruFocus considers Ratos AB to be Significantly Overvalued.
Key valuation signals for RTOBF:
Financial Strength: 5 (near median its 10-year median of 5.00)
GF Value™: $2.59 vs. price of $3.42 (32% above fair value)
No single metric tells the full story. See the RTOBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ratos AB is an investment company that owns and develops unlisted medium-and small-sized Nordic companies. The company focuses on technological and infrastructure solutions and comprises two business segment; Construction & Services and Consumer. Majority of the revenue is generated from its Construction & Services segment which predominantly includes maintenance of infrastructure within railway, road, energy solutions, and construction of new critical buildings such as hospitals, schools, police stations and governmental buildings in the Nordics. Geographically, the company generates majority of its revenue from Norway and rest from Sweden and other regions.
56GF Score
Get the complete analysis for RTOBF
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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